Apple will double its business in India in FY21, CEO Tim Cook said during the company’s earnings call on Friday. The executive also said that the company earned about one-third of its revenue from emerging markets in the financial year. Despite growing progress in India, the Cupertino company missed Wall Street’s expectations due to supply constraints due to COVID-19 and its consequences in key markets. Apple said it generated quarterly revenue of $83.4 billion (about Rs 6,23,800 crore) in the fourth quarter ended September 25.
“We are optimistic about the future, especially as we see strong demand for our new products,” says Cook, 60, Told Addressing investors during the earnings call.
The executive did not disclose the factors that helped Apple achieve remarkable growth in India. However, he highlighted that the iPhone maker posted “double-digit growth in every geographic segment, setting September quarter records in both developed and emerging markets.”
Notably, this is not the first time Cook has spoken vaguely about Apple’s growth in India and has shown optimism about further success in emerging markets. In January also, he had said that the company’s business in India had doubled in the last quarter. He also reported achieving “quarterly record” in the Indian market in October last year.
Just ahead of the festive season in the country, Apple introduced the iPhone 13 series, which helped restore the iPhone 12 model. The prices of older iPhones have also come down.
Still, some market experts believe that Apple’s updates in the country were not the primary reason for its success.
“Definitely there has been growth in the luxury segment across all products,” said Faisal Kawoosa, founder and chief analyst at market insights firm TechArc.
He added that even in the smartphone market in India, the Lux segment (Rs 50,000 and above as defined by TechArc) has doubled in a year’s time in terms of volume. This is because the luxury appliances and products segment and even a segment bottom line were somewhat shielded from the impact of the COVID-19 pandemic on several fronts, he said.
The analyst also cited market insights to underline that Apple had crossed 3 million units in iPhone sales in India last year alone and is expected to cross the 4 million mark this year.
Prabhu Ram, head of industry intelligence group at market research firm CMR, told Gadgets 360 that Apple’s “stellar run” in India continues. He said the older generation iPhone models, especially the iPhone 12, along with the iPhone 11, contributed to the company’s success in the quarter.
“A growing share of local assembly, strong retail initiatives including online stores, and aggressive marketing initiatives – all contributed to Apple’s success during the festive sale,” Ram said.
He also noted that despite the current supply constraints, Apple was doing well and was on course for its “best performance” in the country.
according to statistics share By CMR, Apple’s iPhone received 28 per cent growth in year-on-year (YoY) shipments. The firm also predicts that for the full year, the iPhone lineup in the country will increase its market share to 3.5 percent from the current three percent, with iPhone shipments reaching the new milestone of five million units.
That said, ongoing supply constraints hit Apple last quarter as it missed Wall Street’s revenue estimate of $84.8 billion (about Rs 6,34,200 crore).
“We estimate these constraints had a revenue dollar impact of approximately $6 billion (approximately Rs 44,900 crore), driven primarily by industry-wide silicon shortages and COVID-related manufacturing disruptions,” Cook said.